Brumby in carers’ wage cost clash

Victorian Premier
John Brumby
has flatly rejected claims from his own government that Labor’s $50 million promise to boost pay for community workers falls short of the likely cost of the initiative.

Care workers were pursuing a landmark equal pay case through Fair Work Australia, and Mr Brumby in June pledged $50 million a year to cover the increase in payments the government would have to make to the sector.

But The Australian Financial Review has learned that the state’s Department of Human Services has estimated the cost could be as high as $450 million if the claim was accepted in full. Unions involved have claimed the figure is above $200 million a year.

Yesterday, Mr Brumby insisted that the $50 million pledge was more than sufficient in the assessment of the government and the Department of Treasury and Finance.

“It is a very significant amount that we have put aside . . . based on assumptions going forward," he said.

When asked why the department would put the figure at $450 million, Mr Brumby said “I don’t think that’s right".

Meanwhile, Mr Brumby was accompanied by
Olivia Newton-John
to announce he would promise $44.7 million towards her eponymous cancer centre.

The announcement was part of a $138 million cancer treatment package which Mr Brumby said would be costed by Treasury.

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Treasury had asked for parties to submit their policies by last Thursday to allow five business days for costing, but Mr Brumby said the policy in this case was “pretty basic" to cost because it was a capped commitment.

Opposition Leader
Ted Baillieu
yesterday fleshed out his plans for a broad anti-corruption commission, including the scrapping of the Office of Police Integrity.

He also pledged $29 million to set up a community crime prevention program to fund councils and community groups that wanted to address local crime issues such as graffiti and vandalism.

Grants could be used to fund measures such as CCTV cameras, community events, and fencing and lighting projects, he said.

Mr Brumby said Mr Baillieu’s corruption commission framework had similarities to Western Australia’s system, which that state was overhauling.